Refinancing
If you don't like the interest rate on your current mortgage, you can take out a new mortgage to replace it in what is known as refinancing—provided you qualify. This can be with the same lender or another firm. Refinancing is a good idea when interest rates have dropped or if your credit score has recently improved and you think you can negotiate a better deal than when you first bought the home. Some borrowers may choose to refinance in order to consolidate their debt, by taking out a new mortgage for a larger amount than owed on the existing mortgage.
